Is Your Business Franchise Ready?

Is Your Business Franchise Ready?

Here are 14 key items to consider if you are thinking of Franchising your business model, in no particular order…

  1. Financially Sound….this would include having solid financial records and a profitable trading history for the last 3 years.
  2. Returns on Investment…in other words the profits need to be relevant to the inputs, so part-time businesses could also franchise but would have lower start up and running costs.
  3. Ease of duplication…the more complex the business, and skill sets required, the fewer potential franchisees there are to grow with…but that can just be what you are looking for. Where your systems can be followed and trained easily, the more opportunities there are to recruit strong franchisees.
  4. Documented Systems…until you have documented all the key areas of your business, you are not ready to grow by franchising. Lack of documentation will lead to inefficient and inconsistent training and a potential for franchisees to lose their way.
  5. Strong Branding…this means making sure you have all the professionally detailed brand (not just logos) to ensure every aspect of the business is reproduced consistently and professionally. Your local image might not be the best to reproduce so re-branding may even be a consideration
  6. Clear Vision…have you thought through properly what your future vision is and how this would work for potential franchisees? How will this communicated and how will you get everyone to embrace it as theirs?
  7. Culture and Values…often not thought of at all until franchisors start finding franchisees have different morals, agendas and values to them. By establishing them up front it will help with the recruitment of suitable franchisees.
  8. Appeal…does your business have have the attraction for anyone else to want to buy it. Is it a saleable proposition enough for anyone to want to buy it?
  9. Marketing…have you captured everything you need to know about marketing your business, it uniqueness, it’s competitive advantage, and built the winning strategies into a sound marketing plan that will help your franchisees.
  10. Location, Location…what is the likely hood of it working in another area, especially in retail. What testing have you done to prove this? What is it about your location that makes it work.
  11. Leadership…becoming a franchisor requires a different set of skills to running your own business, and strong leadership is essential. Do you have those skill sets or do you have someone on your team to assist?
  12. Re-investment…are you prepared and capable of re-investing into the business to ensure continued best practice and innovation.
  13. Is franchising worth it…financially you need to have done your sums to work out the costs vs the benefits to determine the value of investing in franchising your business.
  14. Win-Win…the best franchises have a focus of win-win…where you succeed not at the expense of your franchisees. A franchisee focus is key to ensure your longevity.

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